Best US Locations for Vacation Rentals: Where to Invest for Maximum Impact
Investing in vacation rentals is a powerful path to both lifestyle freedom and financial independence, but knowing where to buy makes all the difference. The US is rich with promising destinations for those ready to build a vacation rental portfolio. At Vodyssey, we’ve analyzed the latest data and trends to uncover the best US locations for vacation rentals, focusing on places that offer strong returns, sustainable demand, and memorable guest experiences.
What Makes a Location a Top Vacation Rental Market?
Not all markets are created equal. The best vacation rental locations deliver a strong balance of acquisition price, projected gross revenue, and year-round demand. Factors such as proximity to natural attractions, cultural experiences, event calendars, and accessibility matter. It’s also crucial to factor in local regulations and the saturation level of short-term rentals in the area.
Types of Vacation Rental Markets
- Mountain Destinations: These markets see steady demand for both winter sports and summer hiking, making them attractive for year-round profitability. Cozy cabins and homes with scenic views perform exceptionally well.
- Lake Destinations: From fishing to boating, lakeside markets draw families and groups, often commanding a premium for waterfront access.
- College Towns: Steady influxes of visitors for sporting events, graduations, and conferences provide reliable occupancy throughout the year.
- Off-the-Beaten-Path: Travelers seeking unique experiences are increasingly looking to hidden gems away from crowds, often delivering outsized returns for creative hosts.
Vodyssey’s Top US Locations for Vacation Rentals
Our proprietary analysis pinpoints these standout markets for those seeking the best US locations for vacation rentals:
1. Traverse City, Michigan
Nestled along the shores of Lake Michigan, Traverse City charms visitors with its cherry orchards, award-winning wineries, and the stunning Sleeping Bear Dunes. The area’s natural beauty and vibrant downtown scene attract families and couples year-round. Average home prices for a three-bedroom hover around $550,000, with projected gross revenues exceeding $77,000 annually for upscale properties. The market enjoys relatively high occupancy and a strong summer season, making it a prime choice for investors seeking a blend of seasonal and steady returns.
2. Fredericksburg, Texas
In the heart of Texas Hill Country, Fredericksburg offers rich German heritage, picturesque wineries, and a bustling arts scene. Its year-round appeal comes from romantic getaways, culinary tourism, and outdoor adventures at the Enchanted Rock State Natural Area. The average home price for a three-bedroom is about $600,000, while premium rentals can generate just over $77,000 in projected gross revenue. The region’s steady stream of tourists ensures both strong occupancy and long-term appreciation potential.
3. Auburn, Alabama
As a classic college town, Auburn benefits from constant demand due to university events, sports, and conferences. Average home prices are attractive at around $350,000 for a three-bedroom, and the market sees solid returns for properties located near campus and stadiums. The diverse reasons for travel—ranging from academics to outdoor activities in nearby parks—support consistent year-round bookings.
4. Stowe, Vermont
This quintessential New England town is renowned for its ski resorts and scenic beauty. Stowe attracts both winter sports enthusiasts and summer adventurers. Although the average home price is higher (about $700,000), the potential gross revenue is also elevated, with numbers approaching $90,000 annually. The area’s charm and exclusivity give it staying power, particularly for investors targeting higher-end clientele.
5. Gatlinburg, Tennessee (Bonus Market)
Serving as the gateway to Great Smoky Mountains National Park, Gatlinburg stands out for families and adventure seekers. With average five-bedroom home prices around $1 million, the region commands impressive gross revenues—over $160,000 for luxury properties. Its proximity to natural wonders and year-round attractions ensure demand even in shoulder seasons.
Additional Standout Markets
- Beech Mountain & Asheville, North Carolina: Mountain escapes with all-season appeal.
- Lexington, Kentucky and Columbia, South Carolina: Affordable college towns with steady visitor flow.
- Flagstaff, Arizona: Gateway to the Grand Canyon and popular for outdoor recreation.
Key Considerations: Beyond the Numbers
Remember, the best US locations for vacation rentals are those that align with your property goals, risk tolerance, and lifestyle aspirations. Define your buyer type—are you a lifestyle buyer primarily interested in personal use, a retirement planner, or an investor focused on ROI? This clarity will determine which market best fits your long-term strategy.
Market lists are a starting point, but lasting success in vacation rentals depends on understanding local demand drivers, aligning with your target guest, and delivering a standout hospitality experience. In every market, there are good and bad properties—focus on those with strong guest appeal and flexible management potential.
How to Take Your Next Step
- Define your personal and financial objectives for investing.
- Research market-specific regulations and seasonality.
- Analyze comparable properties on platforms like AirDNA to estimate returns.
- Consider working with a mentor or team that offers vetted deals and market data.
Ready to Start Your Vacation Rental Journey?
The opportunity to build wealth and freedom through vacation rentals is real—and the market has never been more diverse. Whether you’re drawn to lake towns, mountains, college communities, or hidden gems, the US offers countless options to fit your vision.
Schedule a call with a Vodyssey expert to explore pre-vetted properties, unlock market insights, and take your next step toward lifestyle and financial freedom. Schedule a call now and start building your future today!